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Oil price recovery: slow train coming

Oil and gas prices have risen since OPEC’s decision to cut production, but recent strength in the US dollar means a recovery will take timeOil and gas prices have risen since OPEC’s decision to cut production, but recent strength in the US dollar means a recovery will take time.

A sustained recovery in oil prices will be hampered by the strength of the United States dollar. (SXC)

Oil prices will stabilise in 2017, but a sustained recovery will be hampered by the recent strength of the United States dollar. While the oil and gas markets remain focused on OPEC’s adherence to production cuts agreed in November between the cartel and a group of non-OPEC countries, currency gyrations may have as much of an effect on oil and gas prices in 2017 as the dynamics of supply and demand.

The US Federal Reserve raised interest rates on 15 December – only...

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